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The
October reading was the lowest since March 2021.
The FAO Cereal Price Index averaged 125.0 points, down 1.3
points from September.
"International wheat prices fell by 1.9% in October, reflecting
generally higher-than-earlier-anticipated supplies in the United
States of America and strong competition among exporters," the
FAO said.
Dairy bucked the downward trend in prices with the FAO index
rising 2.4 points to 111.3 points following nine months of
consecutive declines.
"World milk powder prices increased the most, principally driven
by surges in import demand...especially from Northeast Asia,"
the FAO said.
In a separate report on cereal supply and demand, the FAO
maintained its forecast for world cereal production this year at
2.819 billion metric tons, up 0.9% from the previous year.
"Turning to 2024, winter wheat plantings are underway across the
northern hemisphere and area growth is expected to be limited,
reflecting softer crop prices this year," the FAO said.
Its report said that in Ukraine the continuing effects of the
war with Russia, including constrained access to fields and low
farm-gate prices, along with less-than-ideal weather conditions,
are seen leading to a reduction in the wheat area.
The FAO also said sowing of the 2024 coarse grain crops was
underway in the southern hemisphere.
"In Brazil, early indications point to a pullback in maize
plantings of around 5%, as cost-price ratios are favoring
soybeans," the report said.
(Reporting by Nigel Hunt; Editing by Tomasz Janowski and Mark
Heinrich)
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